This replication study was invited by the Editor in Chief of Management and Organization Review, Arie Y. Lewin. The original study by Judge, Fainshmidt, and Brown (2014) spanned the global financial crisis (2005–2010), and as such, this anomalous time period may not have been representative of most economies, or even the overall global economy. In this replication study we refine and extend Judge et al. (2014) which explored the provocative question – which form of capitalism works best in terms of ‘equitable wealth creation’? Similar to the earlier study, we find that there are multiple paths to macro-economic success. Notably, effective institutional configurations tend to combine high-quality regulatory institutions, effective skill development systems, and social cultures largely unaffected by corruption so there is some commonality amongst effective configurations. In contrast, ineffective institutional configurations tend to be relatively weak in one or several of these three critical sets of institutions. Importantly, we find some novel patterns emerging from the most recent data, including potentially new forms of capitalism associated with equitable wealth creation. In addition, we find that effective credit market institutions are more important, and collective bargaining institutions are less important than the original study suggested. We discuss implications for the comparative capitalism literature, policy makers, and the future of capitalism in the global economy.

This study examines corporate philanthropy in the context of corporate wrongdoing punishment in emerging markets. Building on institutional theory, we propose that in emerging markets, after being punished for fraudulent behavior by the government, which is collectively the largest institution, convicted firms tend to use corporate philanthropy as an institutional strategy to regain legitimacy. Using data of Chinese-listed firms that were punished for financial fraud in the ten years from 2004 to 2013, our findings show the subsequent growth of corporate philanthropy to be positively related to punishment severity. Furthermore, convicted firms’ media visibility, dominant state ownership, and national political appointment strengthen the effect of punishment severity on corporate philanthropy increase. Our institutional perspective offers new insights into why firms engage in corporate philanthropy after fraud punishment.

Innovation contributes to a firm's long-term competitive advantages but also involves significant risk and uncertainty. As agency theory predicts, CEOs are self-interested and risk-averse, and thus are reluctant to engage in innovation investments. However, the extent to which CEOs are self-interested and the mechanisms through which self-interested CEOs affect firm innovation have not been empirically tested. To fill this gap, we propose that CEOs possess a mix of both self-preserving and other-regarding motives, and build a mediation model in which CEO values affect firm innovation via firms’ long-term orientation. Based on a three-phase (from 2014 to 2016) survey of 436 Chinese manufacturing firms, we find that CEOs with high self-regarding values reduce innovation efforts and performance by damaging a firm's long-term orientation. Moreover, CEO tenure, CEO duality, and environmental uncertainty weaken the relationship between CEO values and firm innovation via long-term orientation. Our study enriches the innovation literature by extending the basic assumptions of agency theory and by providing empirical evidence to determine whether and how self-regarded CEOs affect firm innovation.

Autonomy is a primary motive, as well as source of satisfaction, for those who start and run their own business. Autonomy is not inherent to business ownership – owner/founders must make concentrated efforts to achieve and maintain autonomy. This study aims to increase our understanding of autonomy by investigating how it is experienced, the factors that affect it, and the actions that business owners take to attain and retain it. We study these topics in the setting of an emerging market – Russia – and compare the outcomes with a similar study conducted in the Netherlands. Our cross-cultural comparison reveals that the way autonomy is experienced and attained can be viewed as an expression of survival values in Russia and of self-expression values in the Netherlands. We posit an underlying structural similarity by theorizing the level of experienced entrepreneurial autonomy to be the outcome of the balance of power and dependencies.

This article examines how small shareholders protected their interests from large shareholders’ expropriation by forming an alliance and taking collective action to block a convertible bonds issue by a Chinese bank that they considered harmful. Forming an alliance strengthened small shareholders’ network density, enhanced their salience (power, legitimacy, and urgency), and reduced the bank's centrality. This enabled small shareholders to change their strategy from being a subordinator to a compromiser and forced the controlling shareholders and their representatives to change their strategy from a commander to a compromiser. Apart from interest-based motives, the alliance provided small shareholders with identity-based incentives to persistently oppose expropriation by controlling shareholders. This article enriches the literature on small shareholder activism and principal-principal problem.

There is a growing call to understand the influence of corporate social responsibility (CSR) on organizational outcomes, especially in developing economies. Given the strong link between organizational citizenship behavior (OCB) and organizational performance and survival, on one hand, and the constant need in the literature to understand their antecedents, on the other hand, this study adopts the social cognitive theory to examine the relationship between employees’ perceptions of their organizations’ engagement in CSR and their individual engagement in OCB in Nigeria. Based on the relevance of organizational learning culture to both CSR and OCB, the study further examines the mediating role of organizational learning culture in the relationship between employees’ perceptions of their organization's CSR engagement and their individual engagement in OCB. We tested these relationships in a sample of 254 employees drawn from banking, oil and gas, manufacturing and service industries. The results showed that there is a significant positive relationship between employees’ perceptions of their organizations’ engagement in CSR and their exhibition of OCB. This relationship is mediated by organizational learning culture. The implications of the results for CSR, especially in non-enabling institutional contexts, were discussed.